Q1Can an NRI maintain multiple accounts with different banks in India, simultaneously?
Yes, there is no prohibition to open and maintain multiple accounts.
Q2Can an NRI open joint accounts with one or more NRIs?
Q3Can an NRI open joint accounts with residents?
NRIs can open NRE & FCNR jointly with local residents.
Q4Can an NRI deposit local funds into NRE account?
No, only credits coming from abroad in the form of DDs /TTs/ FCs/ TCs etc. can be deposited in NRE a/c. Local money has to be credited to NRO account of an NRI.
Q5Can NRI accounts be opened from abroad also?
We can facilitate to open an account with our parent bank in India. An NRI can open accounts by completing and signing the AOF duly attested by authorised signatory of Union Bank of India (UK) Ltd or by the Indian Consulate along with the attested copies of passport and visa.
Q6Can an NRI open an account with Zero balance?
Yes, An NRI can complete the account opening formalities with zero balance. Subsequeltly he must remit the funds to make the account operative within a reasonable time
Q7Can an NRI give Power of Attorney to a resident to operate his accounts and for making investments on his behalf?
Yes, an NRI can appoint a Power of Attorney holder to make local payment from his NRE / NRO a/cs. and also to make investments on his / her behalf
Q8What are the restrictions imposed on the Power of Attorney?
A Power of Attorney holder cannot do the followings:
- Open and close NRI a/cs. in the name of NRI
- Repatriate funds from a/c. in the form of DD/TT etc. unless specified in the P.A.
- Give gifts.
- Transfer funds to NRE accounts other than that of Principal's.
- Cannot raise loans/execute documents on behalf of NRI.
- Cannot tender FC/FCTC
Q9Is interest earned on NRE/FCNR/NRO a/cs. taxable?
No tax is applicable to interest earned on NRE/FCNR a/cs. However, interest earned on NRO a/cs. is subject to TDS as per extant guidelines.
Q10If the NRE/FCNR deposits are withdrawn before the maturity date, what will be the loss?
If the deposit has not run for the minimum maturity-no interest is paid. Otherwise, the interest at the rate applicable for the period is paid as per the bank's policy from time to time.
Q11Can the NRI deposits be prematurely extended to get benefit of higher interest?
Yes, the deposit will earn interest without penalty for the period it has run, provided it has run for the minimum maturity period and thereafter at the higher interest
Q12Will the Bank renew our NRE /FCNR deposits automatically?
Yes, provided automatic renewal instruction are given at the time of opening the deposit in which case, it will be automatically renewed for an identical period
Q13Is nomination permitted in NRI a/cs?
Yes, NRIs can nominate either a resident or a non-resident as Nominee. However, only one nominee is permitted per account. Nominee can also be a minor in which case, guardian has to be appointed to receive payment on minor's behalf.
Q14What are the formalities in death claim settlement?
If the nominee, either resident or non-resident, plans to utilize the funds locally payment will be made in Indian Rupees. If, however the nominee is an NRI and desires to repatriate the amount, the nominee will have to comply with LEG formalities
Q15What are LEG formalities?
The NRI nominee has to submit an application in form LEG along with the death certificate.This compliance is required only if the deceased account holder was an NRI at the time of death and the nominee also continues to be an NRI at the time of filing the claim. Further, the nominee has to give suitable declaration duly signed and witnessed by all the legal heirs of the deceased NRI.On completion of these formalities, the Bank will credit the amount of deposits to the nominee's NRE / FCNR account or repatriate it abroad as per instructions. Cases not conforming to the above need prior approval of RBI.
Q16Can NRI invest in immovable properties on repatriation basis?
Yes, Repatriation benefit is available for 2 residential houses. The purchase should be out of funds remitted from aboard or out of NRE/FCNR a/cs, in accordance with the provisions of FEMA.
Q17Can NRI invest in shares/debentures of Indian Cos., and other securities on a non-repatriation?
Yes, NRIs can invest without any limit on non-repatriation basis in shares and convertible debentures of Indian Cos., issued either by public issue or private placement or right issues. NRI can also purchase on non-repatriation basis dated Govt. Securities (other than bearer securities). Treasury bills., units of domestic mutual funds, units of money market mutual funds.
Q18What are the rules pertaining to investments by NRIs in shares and debentures of Indian Cos. on repatriation?
NRIs can invest in shares & debentures of Indian Cos on repatriation basis as per general permission granted by RBI.
Q19How do I make an outward remittance from my NRE account?
For making an outward remittance from your NRE account, please submit a simple request letter specifying the necessary details to the branch where you have your NRE account to initiate the outward remittance and debit your account for the amount and charges.
Q20Is there a limit for making an outward remittance from my NRE account?
NRE account balances are freely repatriable. There is no limit specified for outward remittances from such accounts.
Q21The NRE account is operated by a mandate-holder. Can a mandate holder make an outward remittance from the account?
Mandate holder in the NRE account can initiate an outward remittance, but only if the beneficiary of the remittance is the account holder himself. For others the account holder should request.
Q22Can I make outward remittance from my NRO A/c?
Outward remittances from NRO account is permissible subject to satisfying the documentation requirements.
Q23What documents are needed for making an outward remittance from my NRO account?
For making an outward remittance from your NRO account, please request the branch in India and initiate the outward remittance by filling up the following:
- Request letter specifying the necessary details.
- In addition to this, you have to provide documentary proof of the source of the funds sought to be remitted and C.A. Certificate in Form 15CA and 15CB.
- The formats and submission details are available at the Tax Information Network website of the Income Tax Department, at http://www.tin-nsdl.com
- Form A2 (Application for Foreign Exchange) and a FEMA declaration.
Q24Is there a limit to repatriate funds out of NRO account?
Subject to a limitation of USD 1,000,000 Authorised Dealers (Banks) can permit repatriation of your current income for the current financial year. Current year is the financial year in which the remittance is sought to be made. Balances in the NRO account arising out of capital receipts, inheritances and sale of property (see point 27 below) can also be repatriated up to the above limit.
Q25Can a joint holder or mandate holder initiate remittances from NRO account?
In case of NRO account, the joint holder may be resident or non-resident. In case the remittance is being initiated by the resident joint account-holder or the mandate holder, the beneficiary must be the account holder/s. Mandate holder can only repatriate the current income from the NRO account
Q26Can the proceeds of sale of immovable property be repatriated out of NRO account? What is the process to repatriate such proceeds?
The proceeds of sale of property can be repatriated out of NRO account. The property sale deed and purchase deed should be documented and copies submitted to the branch. If the property was acquired as a gift/inheritance then gift deed or Will/Succession certificate/Certificate of probate/Legal heir certificate for the deed should be documented and copies submitted to the branch and a C.A Certificate on the transaction and applicable capital gains tax and income tax have been paid. The amount sought to be repatriated should not exceed the sales proceeds and should be within the limit of USD 1,000,000 per financial year.